By Brittany Llorente
Media Marketing Associate
It seems like 2018 is just getting started, but there are already a lot of changes that have started taking place.
Due to changes in the tax reform legislation, this is just one of the steps that the IRS will be making in response to the new tax laws. Employers now have until February 15, 2018, to implement the new 2018 withholding tables.
What does this mean for employees?
According to the IRS website, “Many employees will begin to see increases in their paychecks to reflect the new law in February. The time it will take for employees to see the changes in their paychecks will vary depending on how quickly the new tables are implemented by their employers and how often they are paid — generally weekly, biweekly or monthly.”
What about W-4 forms?
The current form to use will be the 2017 form that employees have already filed. Employees do not have to do anything at this time. However, the IRS is working on revision for the W-4 form. According to the IRS, “Form W-4 and the revised calculator will reflect additional changes in the new law, such as changes in available itemized deductions, increases in the child tax credit, the new dependent credit and repeal of dependent exemptions.”
What resources do I have?
Currently, the IRS withholding calculator is
unavailable until they are able to update it with the new withholding information. However, the IRS has published a frequently asked questions page addressing why the changes are being made, how soon employees will see changes in their paychecks, and more.
*Update: 3/2/2018: The IRS withholding calculator has been updated and is fully functional.
Is this the end of the changes?
Not likely. The IRS has plans to continue making further changes into 2019. So, be prepared.
For further information, visit www.IRS.gov.